Qorvo completes Custom MMIC acquisition; delivers boost to defense, aerospace and commercial applications

Qorvo announced on Wednesday that it has completed its acquisition of Custom MMIC, supplier of high-performance GaAs and GaN monolithic microwave integrated circuits (MMICs) for defense, aerospace and commercial applications. 

As part of Qorvo’s Infrastructure and Defense Products (IDP) business, the Custom MMIC team will continue to expand its millimeter wave (mmWave) capabilities for products used in defense phased array and AESA radars, electronic warfare, satellite communications, wireless backhaul and microwave test equipment. 

Chelmsford, Massachusetts-based Custom MMIC was founded in 2006 and has extensive experience developing MMICs at frequencies up to 70 GHz. Custom MMIC adds small signal mmWave expertise and a portfolio of more than 180 standard products including LNAs, mixers, attenuators, phase shifters and switches. 

Custom MMIC president and CTO Paul Blount joins Qorvo as a director of engineering for Infrastructure and Defense Products.

“Custom MMIC’s best-in-class die and packaged components augment our power amplifiers to enable multi-chip modules for a broad range of defense, aerospace and commercial applications,” said James Klein, president of Qorvo Infrastructure and Defense Products. “We look forward to building on Custom MMIC’s reputation as an outstanding strategic supplier to leading defense prime customers, as we expand our mmWave capabilities and product offerings for defense and commercial markets, including 5G.”

Qorvo also announced its acquisition of Decawave, supplier of ultrawideband solutions, adding to its RF technology position, and opens up access to a large, new and rapidly growing wireless market. 

The combined purchase value of these two acquisitions is approximately $500 million, which will be funded from existing cash on hand. 

The company’s guidance expected both transactions to close this month, and the financial impact, slightly dilutive to earnings in the near term, is reflected in its March guidance.

Looking at the March quarter outlook, Qorvo expects revenue between $800 million and $840 million or $820 million at the midpoint, non-GAAP gross margin of approximately 48.5 percent and non-GAAP diluted earnings per share of $1.55 at the midpoint of our guidance. Its revenue outlook for the March quarter reflects continued mobile 5G demand and a return to year-over-year growth for IDP.

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